As many of you are aware, Hanjin Shipping filed for Court Receivership today in Seoul, Korea. While this means that there will be court-appointed oversight of Hanjin Shipping operations moving forward, it is in essence, the end of Hanjin Shipping as we know it.

Hanjin Shipping has not been a key component of our carrier network for some time, although with global alliances and carrier entanglements, it is difficult to avoid some impact – especially within the CKYH+E Alliance.

Moving forward, Hanjin as of today is no longer accepting bookings, and Hanjin’s CKYH+E Alliance partners are also no longer accepting bookings on Hanjin vessels nor from Hanjin Shipping on partner vessels. For the few bookings we already have on Hanjin for September departures, we are in the process of canceling those bookings and moving to alternative services. For containers that are booked on Hanjin, that are already loaded but not yet returned to the terminal, we advise to unload those containers and we will rebook with an alternative service.

For those shipments that are currently on the water, on Alliance services but on Hanjin vessels, we are working with our carrier partners to do everything we can to insure timely release and availability of those shipments upon arrival at final destination. There is a possibility of ship seizure upon arrival but we are confident the CKYH+E Alliance partners will be doing everything possible to obtain releases of their cargo on those vessels.

Market Conditions – What impact will this have? Any sudden, dramatic, and disorderly removal of capacity and services in the market will cause significant disruption. Hanjin was a major player in the TP trade and all that cargo now has to immediately flow to other carriers in a market where space was already very tight. Carriers had already planned and will be successful in obtaining a large TPEB GRI on September 1, 2016 and we would expect carriers to enact a second PSS for September 15, 2016. In addition, in a preemptive move Maersk filed another GRI for October 1, 2016 of $1500/40’ (TPEB). We expect the US export GRIs that have been filed for October and November to go into effect as well.

Congestion: With Hanjin vessels, containers, and chassis getting stuck globally, there will no doubt be congestion challenges at terminals everywhere.

Our #1 priority as always is to help maintain our customers’ competitiveness, to keep your cargo flowing as quickly and as consistently as possible, and to continue to communicate effectively along the way. Our nimbleness, market awareness, and “Built Different” philosophy enable us to do this - as your partner. We will get through this together.